3 Soldiers Candlesticks - Traders Log (2024)

FAQs

What is the 3 soldier pattern in trading? ›

Three white soldiers is a bullish candlestick pattern that is used to predict the reversal of the current downtrend in a pricing chart. The pattern consists of three consecutive long-bodied candlesticks that open within the previous candle's real body and a close that exceeds the previous candle's high.

It consists of three successive candlesticks – the first is long and bearish and is followed by a smaller bullish bar that is completely engulfed by the first one. The third candle is bullish and closes above the second candle's high, suggesting a potential shift from a downtrend to an uptrend.

Three white soldiers are one of the rarest candlestick patterns that appear almost after 3000 candles in the chart. However, the success rate is around 80% which means every time this pattern is displayed, the market has shown a good reversal and brings an opportunity to earn profit in a long position.

The Three Black Crows candlestick pattern is just the opposite of the Three White Soldiers. It is formed when three bearish candles follow a strong UPTREND, indicating that a reversal is in the works. The second candle's body should be bigger than the first candle and should close at or very near its low.

The head and shoulders chart pattern and the triangle chart pattern are two of the most common patterns for forex traders. They occur more regularly than other patterns and provide a simple base to direct further analysis and decision-making. Try a demo account to practise your chart pattern recognition.

A 3 bar reversal pattern shows a turning point in the market. Compared to other reversal patterns out there, the three bars are one of the safer ones. Because it extends over three bars, using the third bar to confirm that the market has changed direction, it's a safe pattern to trade.

When using any candlestick pattern, it is important to remember that although they are great for quickly predicting trends, they should be used alongside other forms of technical analysis to confirm the overall trend. You can learn more about candlesticks and technical analysis with IG Academy's online courses.

A candlestick pattern strategy will see a trader take note of what the individual candlesticks are doing. They will then make decisions about whether the candlesticks are forming particular patterns which could indicate a certain price behaviour, such as a market reversal.

How accurate is the three white soldiers? The three white soldiers is one of the most reliable trend reversal patterns. Based on studies, the bullish reversal pattern provides s accurate signals 80% to 90% of the time.

What is a soldier pattern? ›

The "Three White Soldiers" candlestick pattern is a compelling bullish candlestick formation that typically unfolds during a downtrend. This pattern consists of three consecutive long and bullish candlesticks, each opening higher and closing significantly higher than the previous one.

The rarest candlestick pattern is often considered the "Abandoned Baby." This pattern is a reversal indicator characterized by a gap followed by a Doji, which is a candle with a small body, and then another gap in the opposite direction.

The triple top is a type of chart pattern used in technical analysis to predict the reversal in the movement of an asset's price. Consisting of three peaks, a triple top signals that the asset may no longer be rallying, and that lower prices may be on the way.

What Is the 3 Strike Strategy? The three line strike is a bullish reversal strategy. It starts with three bearish candlesticks followed by a bullish candlestick. Traders enter long when the price breaks above the third bearish candlestick.

Also known as the Three Advancing White Soldiers, this candlestick pattern is used for predicting reversal from a downtrend to an uptrend. This candlestick pattern is formed after a long downtrend when the bullish forces are more than the bearish forces for three consecutive days.